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FP7

MNEMERGE Report Summary

Project ID: 612889
Funded under: FP7-SSH
Country: Finland

Periodic Report Summary 1 - MNEMERGE (A Framework Model on MNE’s impact on global development challenges in emerging markets)

Project Context and Objectives:
MNEmerge project provides a comprehensive framework for understanding the impact of multinational enterprises (MNEs) on United Nations Millennium Development Goals (MDGs) in developing countries using case studies, quantitative data as well as policy analysis.

In principle MNEs are assumed to promote local economic development through their ‘Foreign Direct Investment’ (FDI). Indeed, FDI by MNEs is viewed in a favorable light by policy makers in developing countries who vie to woo them through attractive offers. This has stimulated research on the processes by which FDI impacts economic and market evolution in developing countries. FDI has been examined from a broad spectrum of angles, with focus on the ways through which benefits of FDI may manifest themselves, via linkages with local organizations and resultant spillovers. The formation of linkages is thus considered the main mechanism by which multinationals can produce positive externalities benefiting host country and socio-economic development.

The project objectives are the following:
1. Development of a framework to analyse MNE impact towards socio-economic development,
2. Development of a model that describes the relationship between MNE, FDI and the economy,
3. Analysis of the role of public policies in supporting responsible business practices and the Millennium Development Goals (MDG), and
4. Provide case studies and quantitative analysis to support the methodological framework model on health, environment and energy

The project studies how MNEs manage their activities in FDI; business functioning; technology and innovation strategies; corporate philanthropy or socially responsible investments, and how these issues can contribute to attaining poverty alleviation; food, health and environmental security and electrification in developing countries.

The consortium assembled for this project has been an active contributor to the multinationals research already before the project and it has extensive expertise on studying societal problems in emerging markets. The research during the project combines the strengths of the partners and it will be carried out by an international, interdisciplinary team involving researchers from Finnish, British and Dutch institutes as well as Indian, Ghanaian and Brazilian organisations. The issues studied in this project are varied but there is a common thread uniting all of its sub-themes, they all relate to how MNEs manage their activities in one of the following areas: FDI, business functioning, technology and innovation strategies, corporate philanthropy or socially responsible investment. We analyse in detail how these issues can contribute to the attainment of poverty alleviation, food security, health security, environmental security and electrification in developing countries.

See the latest project updates: www.mnemerge.com and our FB page link:
https://www.facebook.com/mnemerge?fref=ts

Project Results:
In the current period MNEmerge provides a comprehensive framework for understanding the impact of multinational enterprises (MNEs) on United Nations Millennium Development Goals (MDGs) in developing countries, using case studies, develop methodologies and collect data for quantitative as well as policy analysis.

WP1 delivers a framework for analysis of MNEs impact in host countries. The work started from the review of extant literature.
The results enabled project team to develop a theoretical framework explaining the role played by MNEs in developing economies and the interconnections between MNE and local actors. Additionally the studie on linkages between sanitation, health and poverty reduction have been conducted. The study contributed to the framework building by discovering the roles of MNEs in improving the sanitation conditions in the host country. Therefore, the performed activities resulted into identification the research gaps and building of theoretical framework that serves as input for the following WPs.

WP2 consists on case studies conducted in Brazil, Ghana and India. These
studies have validated the framework developed in WP1. Within project activities were studied role MNEs in agriculture development (India and Ghana), improving access to medicaments and sanitation (India) and the sustainability aspect in provision electricity to remote areas (Brazil). The reports contain case studies results: role played by MNEs in host country, challenges, strategies adopted by MNEs and local players. These preliminary results will serve as an input for policy recommendation developed in WP4.

WP3 focuses on the methodologies for the measuring of MNE impact in developing countries. On this stage of project implementation were developed methodologies for data collection and collected the data for studying MNEs role in poverty reduction through capability building, access to medicine and sanitation, and the role of energy in addressing the MDGs. The performed studies adopted variety of methods both qualitative and quantitative. The reports present the outcomes of the conducted studies, developed questionnaires and the discussion on results and implementation.

WP4 aims on developing policy recommendation. The main activities of the WP 4 are planned for the second project period. However, the accomplished tasks have defined existing policy challenges related to MDGs and identified key organizations and economic actors involved in the policy process. The results will be presented in the deliverables scheduled for the second project period.

WP5 focus on results dissemination.
The dissemination strategy have been developed. The dissemination main objectives and target groups have been identified. The primary dissemination channels are research reports, academic papers, policy briefings. Additionally, the internet dissemination channels (project website, Facebook page) were applied. The outcomes are published papers, conference proceedings, newsletter and stakeholders workshops..

In WP6 we have organized two project meetings in Lappeenranta and Maastricht. Regular Skype meetings amongst partners have been organized (overall 14 all-partner meeting during the reporting period). The IPR management plan, consortium agreement and dissemination plan are finalized. Two project stakeholder meetings were held in India and Ghana. The internal online project sharing platform NQA2.0 was set-up as repository of project materials for partners and project management.

Main results.
1) Project framework have been developed and validated (related to WP1). The framework will provide the conceptual background for the fieldwork undertaken under the project.
2) Fieldwork have been started; case studies in project focus countries (Ghana, India, Brazil) have been planned and undertaken, (related to WP2). The work is still ongoing, the final results will be analyzed in WP4.
3) Methodologies for assessment the role of MNEs have been developed (related to WP3). In particular the methodology for assessment the role of MNEs in poverty reduction, improving access to access to medicine and sanitation, and environmental sustainability.
4) Project website have been created; dissemination activities have been undertaken: preparation for regional stakeholder meetings have been started (related to WP5).
5) Project management plan have been created, internal communication portal NQA2.0 have been launched. Two internal meetings (in Lappeenranta and Maastricht) have been held. These activities framed the overall project management practices and facilitated the communication between partners.

Potential Impact:
The project has four goals:
1. Development of a framework to analyse MNE impact towards socio-economic development,
2. Development of a model that describes the relationship between MNE, FDI and the economy,
3. Analysis of the role of public policies in supporting responsible business practices and the Millennium Development Goals (MDG), and
4. Provide case studies and quantitative analysis to support the methodological framework model on health, environment and energy

During the project we aim to identify modes of MNE collaboration with societal stakeholders which permit business sustainability while simultaneously ensuring sustainable development of the society. We will also develop policy recommendations for decision making that can facilitate the implementation project recommendations.

MNEmerge contributes with policy and strategy recommendations to all eight MDGs. These recommendations are based on field and case studies on three continents (Asia, Africa and Latin America) as well as regional stakeholder workshops and the involvement of an international Advisory Board to assess the real impact of MNE activities on developing country host economies.

As a result, the project will provide concrete recommendations to support the future decision-making as well as to present best practices for MNE company level actors concerning corporate responsibility, sustainable development and energy efficient behaviour.

The project outputs are targeted to underline critical factors and give recommendations for policy and strategy development, i.e. for the UN’s sustainable development goals (SDGs) setting the 2030 agenda for sustainable development.
(https://sustainabledevelopment.un.org/)

List of Websites:
www.MNEmerge.com

Related information

Documents and Publications

Contact

Anni Liikanen, (Administrative project manager)
Tel.: +358 50 322 32 53
E-mail
Record Number: 192139 / Last updated on: 2016-12-15
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